Monthly Subscription Commerce

Monthly Subscription Commerce

Maria Paula Cabrera
International Economics and Trade, International School, Jinan University, Guangzhou, China
mapisguti@hotmail.com

Abstract

Subscription business is a business model where a customer must pay a subscription price in order to get access to a product. This model was established by magazines and newspapers, but in recent years have beenused in Ecommerce.
This business makes customers have more advantage available at their click of their hand, focusing not only on the client needs but in trends and of what is hot at the moment, in this case fashion. In this paper I am going to discuss how Shoedazzle invented subscription commerce model. The fashion e-commerce outfit that counts reality star/deep thinker Kim Kardashian among itsfounders.

1. Introduction

Monthly subscription are auto-replenishment programs for customers, allowing them to subscribe to frequently purchased items, this subscription commerce platform integrates seamlessly into an ecommerce site, allowing merchants to tap the power of convenience to turn new and existing customers to repeat buyers.

Most of these businesses are centered aroundproviding consumers a curated ‘box of goods’ for a monthly subscription fee.

Subscription memberships are a booming business right now, subscription is a classic way of doing business. So what’s new here? The two main things are the goods being offered for subscription and the delivery method. Beauty products, toys, organic food, nuts and Cloth are not conventionally products that consumerswould have subscribed to.

They have typically been purchased on an as-needed basis from either physical or online stores. The second change is that most of the new subscription services are ordered online and delivered in a box to your home.

Here are a few examples of companies in the space:

- Birchbox: Provides a new box of beauty samples to your door every month.
- Graze: Aselection of nuts delivered in a box to your homeor office. You build your selection online.
- Dollarshaveclub.com: Receive fresh shaving blades each month for a dollar.
- Shoedazzle: Receive a new pair of shoes every month.
- Barkbox: Receive a box of selected products for your dog every month.
- Wummelkiste: A box of arts and crafts products for your children that give them a new project to doevery month.

2. History

Shoedazzle was found by Brian S. Lee, co-founder of LegalZoom.com; attorney Robert Shapiro; M.J. Eng; and television personality Kim Kardashian as its chief fashion stylist. Website: shoedazzle.com

ShoeDazzle.com, a new concept launched in March 2009, is a personalized e-commerce experience for women of all ages. Subscribers to the service receive a new pair of shoesevery month, for $39.95/month. To gain traction amongst broad audiences, Shoedazzle needed a way to reach diverse customer segments, introduce its new idea, and become relevant to the female community in a cost-effective manner.

They provide free shipping. If you are unsatisfied with your shoes, simply return them using the pre-printed return shipping label provided with your order.

Thisonline styling service is where women who love shoes and fashion get personalized style recommendations every month .You will see high-quality shoes, handbags and jewelry--as well as exclusive collections and limited-edition deals.

Just take a fun style quiz to see your style profile and check out what celebrity stylists choose for you by building an intimate, customized experience throughcreative innovation, social engagement and world-class service, they strive to make women feel pampered and beautiful.

3. Finance

In November 2009, ShoeDazzle secured its first round of $7 million funding from Polaris Ventures, a venture capital firm specializing in early-stage investments.

In April 2010, Lightspeed Venture Partners led a $13 million round of financing.

In May...